Billy is the project manager of the PQW Project and she has an assigned project budget of
$655,000. Currently she is 80 percent complete with the project though she was scheduled to be 90 percent done by this date. She has spent $490,000 to date. What should Billy report as her cost performance index (CPI)for this project?
Correct Answer:B
Cost performance index (CPI) is used to calculate performance efficiencies. It is used in trend analysis to predict future performance. CPI is the ratio of earned value to actual cost. The CPI is calculated based on the following formula: CPI = Earned Value (EV) / Actual Cost (AC) If the CPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The CPI value of 1 indicates that the project is right on target. In this instance the earned value is $524,000 and the actual costs are $490,000. In this project Billy has spent less than what the work is worth - a good thing. This could be because of a cost savings, such as travel or shipping, or because a risk event didn't come into play. This causes the positive CPI - something which does not happen very often.
Answer option A is incorrect. .07 is an incorrect calculation for the cost performance index for the project.
Answer option D is incorrect. .89 represents the schedule performance index. Answer option C is incorrect. $34,000 is the cost variance of the project.
You are the project manager for the NQQ Project for your organization. You and the project team are creating the activity list for the NQQ Project. You have instructed the project team members that they should include an activity identifier and a scope of work description for each activity in the activity list. Why is this information needed?
Correct Answer:C
The primary reason for including the activity identifier and the scope of work description for each activity is to ensure the project team understands what work is required to be completed.
Answer option B is incorrect. Profit and loss statements are not required for all projects and they are linked to actual performance against a project baseline.
Answer option D is incorrect. Communicating to the stakeholders is always a good idea, but stakeholders would not usually need to know the activity details. Their focus is on project benefits and deliverables.
Answer option A is incorrect. A requirements traceability matrix is the tool to link requirements to project deliverables.
Which of the following is an output of the Develop Project Charter process?
Correct Answer:D
The Develop Project Charter process documents the formal authorization of a project or a
phase. It also documents initial requirements that satisfy the stakeholder's needs and expectations. It is used to validate the decisions made during the previous iteration of the Develop Project Charter process. The various inputs of this process are as follows: Project statement of work
Business case Contract
Enterprise environmental factors Organizational process assets
The output of the Develop project Charter process is as follows: Project charter
Gary is the project manager for his organization. At each weekly status meeting with his project team, Gary collects information on the work that has been completed and reviews the work that is remaining in the project. Alice, one of Gary's project team members, consistently reports that she's late on her project work. After the meeting, Gary and Alice discuss why the work is late as it is causing other delays in the project. What is the review of the late work commonly called?
Correct Answer:A
Variance analysis is the study to determine why a variance in the project exists. Alice's late work may be for a number of reasons so Gary needs to determine why in order to address the problem. Variance analysis is a process that examines the dissimilarities between the planned and the actual budget or schedule in order to discover unacceptable risks to the budget, schedule, quality, or scope of the project. It is a method for resolving the total variance in the set of scope, schedule, and cost variables into particular component variances that are associated with defined factors affecting the cost, scope and schedule variables.
Answer option D is incorrect. Discipline is not the best answer as Gary, at this point, is simply reviewing the situation to determine why the variance exists.
Answer option C is incorrect. Quality control is the inspection of the work results to prove the existence of quality and to prevent mistakes from reaching the customer.
Answer option B is incorrect. This may be a type of leadership, but it is not the best answer for the question.
You are the project manager of the HQQ Project. Your project is running late by ten percent of where you should be at this time. Management is concerned and they'd like to know what is your schedule performance index. Considering that the project has a BAC of
$567,899, you are thirty percent complete, and you have spent $179,450, what is the SPI for this project?
Correct Answer:B
The schedule performance index is found by dividing the earned value by the planned value. In this instance, the planned value is ten percent more than where the project is forty percent of the budget at completion. Schedule performance index (SPI) is the measure of schedule efficiency on a project. It is used in trend analysis to predict future performance. SPI is the ratio of earned value to planned value. The SPI is calculated based on the following formula: SPI = Earned Value (EV) / Planned Value (PV) If the SPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The SPI value of 1 indicates that the project is right on target. Answer option C is incorrect. 0.95 is the project's cost performance index.
Answer options A and D are incorrect. An index is a decimal value.